How Are Attorney Fees Handled in Bankruptcy?

Posted on July 22, 2013 at 8:37pm by

Answers from a Kansas City Bankruptcy Lawyer

A consumer bankruptcy offers many valuable solutions to financial problems that may, at first, seem impossible to fix. Many people turn to bankruptcy when they find themselves unable to manage the debt that accompanies massive medical bills, loss of employment or upheaval in the economy. However, despite the many solutions that bankruptcy offers, there are still countless individuals who do not file for bankruptcy because they may mistakenly believe they cannot afford the assistance of a qualified Kansas City bankruptcy attorney.

Affording a Chapter 7 Bankruptcy

If you believe you that you cannot afford an experienced Kansas City bankruptcy attorney, it may be tempting to file for Chapter 7 on your own. While you are free to do so, it is unlikely you will  reap the full benefits of bankruptcy without legal assistance. You might make mistakes that result in your case being dismissed, your debts not being fully discharged, or require you submit what might seem like an endless stream of documents to the Trustee. In some cases, mistakes can result in an individual being barred from filing again for a certain period of time.

Individuals should know that bankruptcy attorney fees are reviewed by the Bankruptcy Trustees and  Court. The court looks out for consumers and is free to cut down attorney fees if it believes they are unreasonable. For example, any time an attorney charges in excess of $3,000 for a Chapter 7 bankruptcy case in the Kansas City area, you can be assured it will be reviewed by the Trustee and Court. Individuals considering bankruptcy should not only research bankruptcy attorney fees, but also the experiences and backgrounds of the lawyers. While some inexperienced attorneys may charge less than a seasoned and qualified lawyer, this situation may cost more when an inexperienced lawyer fails to secure the best possible resolution to your case. Consumers should also watch out for attorneys of any experience level (especially experienced attorneys) charging way below the rates others charge, as it may indicate the attorney is desperate to raise cash due to pending problems!

Chapter 13 Bankruptcy Fees

If you have steady income and wish to continue paying down secured debts such as a mortgage, or even curing an arrearage, you may consider filing a Chapter 13 bankruptcy. In a Chapter 13 case, managing the cost of bankruptcy attorney fees will be worked into your payment plan of three to five years. Like other debts, a Chapter 13 payment plan will allow you to repay your attorney fees over time.

Not every bankruptcy attorney is interested in finding the best solution for you and your family. Some are just concerned with getting their fees and settling your case as quickly as possible, without listening to your needs and concerns. The right Kansas City bankruptcy attorney will create a payment plan that allows you to keep what you need to survive and help you build a financial plan that will keep you stable in the future.

We Are On Your Side

No matter what your situation is, a solution may be available through consumer bankruptcy. Contact our Kansas City bankruptcy lawyers today to learn more about our bankruptcy attorney fees and how bankruptcy can help you rebuild your financial life.

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